Gold reached a new all-time high on Monday (December 4), but will its momentum continue?

Speaking just ahead of the yellow metal’s major milestone, David Morgan, publisher of the Morgan Report, weighed in on whether he thinks this will be a real breakout or just another fake out.

‘We set a line, and gold has to achieve above that price, and it has to maintain it for three days in a row. And it also needs to be on above-average volumes. And if that occurs then we are about 80 percent assured that it is a breakout and not a fake out. We’ll see — I lean toward unfortunately I think it’s going to come down again, but I could be wrong,’ he said.

Morgan is concerned about the economy heading into 2024, saying a US recession has already arrived.

‘I hate to say it, but this could be a depression in 2024 … the trend is not a soft landing or a recovery. The trend continues to be a contraction in the economy across the board, China included,’ he said.

Elaborating on what that could look like, Morgan said he thinks the US Federal Reserve will lower rates.

‘That I think could be a worse scenario than having high interest rates, believe it or not … I would say if we push down hard on the economy and flush out all this malinvestment and take the pain, then we could come out and rebuild on a good foundation,’ said. ‘I don’t think the Fed is willing to do that, and it’s hard on everybody. But if you go the other way and ease up and kiss the boo-boo and make it better, then the currency basically goes in the toilet and you can’t trust it.’

Looking back at gold, Morgan said that while its short-term future is less clear, he does see 2024 as the beginning of the next major leg up in the precious metals market. That could boost silver to over US$30 per ounce and perhaps further.

Watch the interview above for more from Morgan on gold, silver and the overall market.

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.